Glossary

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OTC

Economy Term

OTC (Over-the-Counter) refers to transactions that occur directly between two parties without being traded on a formal exchange.

In the industry, OTC transactions are commonly used in the trading of securities, such as bonds, stocks, and derivatives. These transactions are typically negotiated between two parties through a dealer network or electronic marketplace, without being reported to a centralized exchange.

OTC trading can offer more flexibility and customization in contract terms than exchange-traded securities, but it is also subject to greater counterparty risk since the transactions are not regulated by a central authority.

The use of OTC transactions has grown in recent years, with a significant portion of global derivatives trades now occurring over-the-counter. However, they have also come under scrutiny for their role in the 2008 financial crisis. In response, regulators have increased oversight of OTC markets in an effort to minimize systemic risks.

More Glossary Terms Beginning with O

Off-Label
Use of a drug for a disease or condition other than the indication for which it was approved by a regulatory authority, such as the FDA or EMEA.

Health Care Term Letter: O
On Balance Volume OBV
The concept behind the indicator: volume precedes price. OBV is a simple indicator that adds a periods volume when the close is up and subtracts the periods volume when the close is down. A cumulative total of the volume additions and subtractions forms the OBV line. This line can then be compared with the price chart of the underlying security to look for divergences or confirmation. A rising vol

Technical Indicator Letter: O
Oncology
Branch of medicine which studies the characteristics of tumors, their classification, diagnosis and therapy.

Health Care Term Letter: O
Open Pit Mine
A mine that is entirely on the surface. Also referred to as an open-cut or open-cast mine.

Manufacturing Term Letter: O
Open-label Clinical Trial
A trial in which both the treating physician and the patient know whether they are receiving the experimental treatment or control/placebo treatment.

Health Care Term Letter: O
Operating Cost Per Available Seat Mile Cost Per ASM CASM
Represents operating expenses divided by Available Seat Mile ASMs. Airline Industry

Transportation Term Letter: O
Operating Income Growth Rates
The percentage of Operating Income change within a specific period (Y/Y year on year; Seq sequential, from proceeding period; TTM trailing twelve months).

Fundamental Analysis Letter: O
Operating Margin
The measurement of profitability, Operating profit margin represents proportion of Operating income (total sales less operating costs) to total sales. Operating Margin Formula = (Operating Income / Revenues) * 100

Fundamental Analysis Letter: O
Operating Profit Margin
The measurement of profitability, Operating profit margin represents proportion of Operating income (total sales less operating costs) to total sales. Operating Margin Formula = (Operating Income / Revenues) * 100

Fundamental Analysis Letter: O
Operating revenue yield per Available Seat Mile Average Yield per ASM
Represents the average scheduled flown passenger fare revenue for each available seat mile (ASM). Airline Industry

Transportation Term Letter: O
Option
The right, not the obligation, to execute a transaction at a designated price, generally involving equity interests, interest rates, currencies or commodities.

Financial Term Letter: O
Option ARMs Mortgage Loans
The option ARM residential real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only, or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate has usually been significantly below the fully indexed rate.

Financial Term Letter: O

More in this Category

Advance monthly sales
The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey (MARTS) to provide an early estimate of monthly sales by kind of business for retail and food service firms located in the United States. Each month, questionnaires are mailed to a probability sample of approximately 5,000 employer firms selected from the larger Monthly Retail Trade Survey (MRTS). Firms respo

Economy Term
Affiliate
means with respect to any entity, an entity that is controlled by a other company although the other company owns less than a majority of the other entity.

Economy Term
Agents and Brokers
Persons or organizations that act as a representative for others in negotiating contracts, purchases, or sales. Agents and brokers typically earn a commission or fee for their services and do not take possession of, or title to, any goods.

Economy Term
ARPU
Average revenue per user

Economy Term
Balance of payments
Record of transactions between U.S. residents and foreign residents during a given time period. Includes transactions in goods, services, income, assets, and liabilities. It is broken down into the current accounts (international), capital accounts (international), and financial accounts (international).

Economy Term
Balance on current account
Current receipts from the rest of the world less current payments to the rest of the world, formerly called "net foreign investment." Current receipts equal exports of goods and services plus income receipts from the rest of the world; current payments are the sum of imports of goods and services, income payments to the rest of the world, and current taxes and transfer payments to the rest of the

Economy Term
Balance on goods and services
Record of the difference between exports of goods and services and imports of goods and services. In the broad sense, this balance is conceptually equal to net exports of goods and services, which is a component of gross domestic product (GDP).

Economy Term
Bonded Warehouses Manufacturing
Warehouses that are authorized by the United States Customs for storage or manufacturing of goods on which payment of duties is deferred until the goods are removed into Customs Territory. These goods are not subject to duties if reshipped to foreign points.

Economy Term
Brokers
Persons or organizations that act as a representative for others in negotiating contracts, purchases, or sales. Agents and brokers typically earn a commission or fee for their services and do not take possession of, or title to, any goods.

Economy Term
Business sector
All corporate and noncorporate private entities organized for profit and certain other entities that are treated as businesses in the national income and product accounts (NIPAs), including mutual financial institutions, private noninsured pension funds, cooperatives, nonprofit organizations that primarily serve businesses, Federal Reserve banks, federally sponsored credit agencies, and government

Economy Term
CE-marked
A compliance symbol indicating that a product meets the requirements of the European Union (EU) directives that apply to that product. CE stands for Conformit?e Europ?enne, which means European Conformity.

Economy Term
CFTC Commodity Futures Trading Commission
Commodity Futures Trading Commission, an independent agency with the mandate to regulate commodity futures and option markets in the United States.

Economy Term